LOS ANGELES--(BUSINESS WIRE)--
j2 Global, Inc. (NASDAQGS: JCOM) today reported financial results for
the first quarter ended March 31, 2016 and announced that its Board of
Directors has declared an increased quarterly cash dividend of $0.3350
per share.

FIRST QUARTER 2016 RESULTS

Q1 2016 quarterly revenues increased 24.3% to a Q1 record of $200.5
million compared to $161.3 million for Q1 2015.

GAAP earnings per diluted share(1) for the quarter increased
35.6% to $0.61 compared to $0.45 for Q1 2015. Adjusted Non-GAAP earnings
per diluted share(1)(2) for the quarter increased 23.5% to a
Q1 record $1.05 compared to $0.85 for Q1 2015.

Quarterly EBITDA(3) increased 25.1% to a Q1 record $86.7
million compared to $69.3 million for Q1 2015.

Q1 2016 free cash flow(4) increased to a Q1 record of 38.8%
to $60.5 million compared to $43.6 million for Q1 2015.

j2 ended the quarter with approximately $394.5 million in cash and
investments after deploying $83.2 million during the quarter for
acquisitions and j2's regular quarterly dividend.

Key financial results for Q1 2016 versus Q1 2015 are set forth in the
following table (in millions, except per share amounts). Reconciliations
of Adjusted Non-GAAP earnings per diluted share, EBITDA and free cash
flow to their nearest comparable GAAP financial measures are attached to
this Press Release.

Q1 2016

Q1 2015

% Change

Revenues

Cloud Services

$137.0 million

$115.8 million

18.3%

Digital Media

$62.3 million

$43.2 million

44.2%

IP Licensing

$1.2 million

$2.3 million

(47.8)%

Total:

$200.5 million

$161.3 million

24.3%

GAAP Net Income

$29.9 million

$21.9 million

36.5%

GAAP Earnings per Diluted Share (1)

$0.61

$0.45

35.6%

Adjusted Non-GAAP Earnings per Diluted Share (1) (2)

$1.05

$0.85

23.5%

EBITDA (3)

$86.7 million

$69.3 million

25.1%

Free Cash Flow (4)

$60.5 million

$43.6 million

38.8%

"With 24.3% revenue growth and an increase of 25.1% in EBITDA compared
to the same quarter year over year, our first quarter represents a
strong start to 2016," said Hemi Zucker, CEO of j2 Global. "Q1 free
cash-flow grew by 39% to $60.5M and Non-GAAP EPS grew by 24% year over
year. All segments of our business are performing well and we have seen
increasing margins both in our Media and Cloud Backup businesses as they
both continue to benefit from economies of scale. During the quarter we
acquired 6 cloud services businesses, which completed the M&A activity
that we planned for with respect to our full year 2016 business
outlook. This makes me very optimistic regarding the rest of the year."

BUSINESS OUTLOOK

For fiscal 2016, the Company estimates that it will achieve revenues
between $830 and $860 million and Adjusted Non-GAAP earnings per diluted
share of between $4.70 and $5.00.

Adjusted Non-GAAP earnings per diluted share for 2016 excludes
share-based compensation of between $12 and $14 million, amortization of
acquired intangibles and the impact of any currently unanticipated
items, in each case net of tax.

It is anticipated that the Non-GAAP effective tax rate for 2016
(exclusive of the release of reserves for uncertain tax positions) will
increase from 28.4% to between 29% and 31%.

DIVIDEND

j2's Board of Directors has approved a quarterly cash dividend of
$0.3350 per common share, a $0.01, or 3.1% increase versus last
quarter's dividend. This is j2's nineteenth consecutive quarterly
dividend increase since its first quarterly dividend in September
2011. The dividend will be paid on June 2, 2016 to all shareholders of
record as of the close of business on May 18, 2016. Future dividends
will be subject to Board approval.

Notes:

(1)

The estimated GAAP effective tax rates were approximately 30.3% for
Q1 2016 and 29.4% for Q1 2015. The estimated Adjusted Non-GAAP
effective tax rates were approximately 29.1% for Q1 2016 and 28.9%
for Q1 2015.

EBITDA is defined as earnings before interest and other expense,
net; income tax expense; depreciation and amortization; and the
items used to reconcile EPS to Adjusted Non-GAAP EPS referred to in
Note (2) above. EBITDA amounts are not meant as a substitute for
GAAP, but are solely for informational purposes.

(4)

Free cash flow is defined as net cash provided by operating
activities, less purchases of property, plant and equipment, plus
excess tax benefit from share-based compensation. Free cash flow
amounts are not meant as a substitute for GAAP, but are solely for
informational purposes.

"Safe Harbor" Statement Under the Private Securities Litigation
Reform Act of 1995: Certain statements in this Press Release are
"forward-looking statements" within the meaning of The Private
Securities Litigation Reform Act of 1995, particularly those contained
in Hemi Zucker's quote and the "Business Outlook" portion regarding the
Company's expected fiscal 2016 financial performance. These
forward-looking statements are based on management's current
expectations or beliefs and are subject to numerous assumptions, risks
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. These factors
and uncertainties include, among other items: the Company's ability to
grow non-fax revenues, profitability and cash flows; the Company's
ability to identify, close and successfully transition acquisitions;
subscriber growth and retention; variability of the Company's revenue
based on changing conditions in particular industries and the economy
generally; protection of the Company's proprietary technology or
infringement by the Company of intellectual property of others; the risk
of adverse changes in the U.S. or international regulatory environments,
including but not limited to the imposition or increase of taxes or
regulatory-related fees; and the numerous other factors set forth in j2
Global's filings with the Securities and Exchange Commission ("SEC").
For a more detailed description of the risk factors and uncertainties
affecting j2 Global, refer to the 2015 Annual Report on Form 10-K filed
by j2 Global on February 29, 2016, and the other reports filed by j2
Global from time-to-time with the SEC, each of which is available at www.sec.gov.
The forward-looking statements provided in this press release and
particularly those contained in Hemi Zucker's quote and the "Business
Outlook" portion regarding the Company's expected fiscal 2016 financial
performance are based on limited information available to the Company at
this time, which is subject to change. Although management's
expectations may change after the date of this press release, the
Company undertakes no obligation to revise or update these statements.

About Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared
and presented in accordance with GAAP, we use the following Adjusted
Non-GAAP financial measures: Adjusted Non-GAAP earnings per diluted
share, EBITDA and free cash flow. The presentation of this financial
information is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP.

We use these Adjusted Non-GAAP financial measures for financial and
operational decision-making and as a means to evaluate period-to-period
comparisons. Our management believes that these Adjusted Non-GAAP
financial measures provide meaningful supplemental information regarding
our performance and liquidity by excluding certain expenses and
expenditures that may not be indicative of our recurring core business
operating results. We believe that both management and investors benefit
from referring to these Adjusted Non-GAAP financial measures in
assessing our performance and when planning, forecasting, and analyzing
future periods. These Adjusted Non-GAAP financial measures also
facilitate management's internal comparisons to our historical
performance and liquidity. We believe these Adjusted Non-GAAP financial
measures are useful to investors both because (1) they allow for greater
transparency with respect to key metrics used by management in its
financial and operational decision-making and (2) they are used by our
institutional investors and the analyst community to help them analyze
the health of our business.

For more information on these Adjusted Non-GAAP financial measures,
please see the appropriate GAAP to Adjusted Non-GAAP reconciliation
tables included within the attached Exhibit to this release.

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED, IN THOUSANDS)

MARCH 31,2016

DECEMBER 31, 2015

ASSETS

Cash and cash equivalents

$

242,755

$

255,530

Short-term investments

69,821

79,655

Accounts receivable, net of allowances of $5,267 and $4,261,
respectively

98,329

114,680

Prepaid expenses and other current assets

19,706

25,722

Deferred income taxes, current

—

7,218

Total current assets

430,611

482,805

Long-term investments

81,896

78,563

Property and equipment, net

56,370

57,442

Goodwill

829,012

807,661

Other purchased intangibles, net

362,689

352,641

Deferred income taxes, non-current

5,884

—

Other assets

5,372

4,607

TOTAL ASSETS

$

1,771,834

$

1,783,719

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable and accrued expenses

$

82,813

$

114,384

Income taxes payable

5,729

5,589

Deferred revenue, current

78,975

76,104

Capital lease, current

198

214

Deferred income taxes, current

—

363

Total current liabilities

167,715

196,654

Long-term debt

594,406

592,037

Deferred revenue, non-current

5,688

6,538

Capital lease, non-current

139

148

Liability for uncertain tax positions

37,658

35,917

Deferred income taxes, non-current

40,637

43,989

Other long-term liabilities

17,547

18,228

Total liabilities

863,790

893,511

Commitments and contingencies

Stockholders' Equity

Preferred stock

—

—

Common stock

480

479

Additional paid-in capital

295,633

292,064

Retained earnings

640,001

626,789

Accumulated other comprehensive loss

(28,070

)

(29,124

)

908,044

890,208

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,771,834

$

1,783,719

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED, IN THOUSANDS)

THREE MONTHS ENDED MARCH 31,

2016

2015

Revenues

$

200,502

$

161,253

Cost of revenues (1)

34,288

28,186

Gross profit

166,214

133,067

Operating expenses:

Sales and marketing (1)

48,112

37,590

Research, development and engineering (1)

8,988

8,447

General and administrative (1)

55,776

46,500

Total operating expenses

112,876

92,537

Income from operations

53,338

40,530

Interest expense, net

10,233

10,313

Other expense (income), net

126

(784

)

Income before income taxes

42,979

31,001

Income tax expense

13,036

9,124

Net income

$

29,943

$

21,877

Basic net income per common share:

Net income attributable to j2 Global, Inc. common shareholders

$

0.62

$

0.45

Diluted net income per common share:

Net income attributable to j2 Global, Inc. common shareholders

$

0.61

$

0.45

Basic weighted average shares outstanding

47,966,718

47,422,396

Diluted weighted average shares outstanding

48,238,098

47,766,088

(1) Includes share-based compensation expense as follows:

Cost of revenues

$

95

$

83

Sales and marketing

531

584

Research, development and engineering

207

194

General and administrative

1,976

2,143

Total

$

2,809

$

3,004

j2 GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED, IN THOUSANDS)

THREE MONTHS ENDED MARCH 31,

2016

2015

Cash flows from operating activities:

Net income

$

29,943

$

21,877

Adjustments to reconcile net income to net cash provided by
operating activities:

Non-GAAP net income is GAAP net income with the following modifications:
(1) elimination of share-based compensation and the associated payroll
tax expense; (2) elimination of certain acquisition-related integration
costs; (3) elimination of interest costs in excess of the coupon rate
associated with the convertible notes; (4) elimination of amortization
of patents and intangible assets that we acquired; (5) elimination of
additional tax or indirect tax related (expense) benefit from prior
years; and (6) elimination of income tax provision associated with the
noted modifications.

(2)

(5)

Acquisition

Additional

(1)

related

(3)

Tax Expense

Share-based

Integration

Interest

(4)

(Benefit) from

Adjusted

GAAP

Compensation

Costs

Costs

Amortization

Prior Years

Non-GAAP

Revenues

$

200,502

—

—

—

—

—

$

200,502

Cost of revenues

34,288

(95

)

—

—

(1,245

)

—

32,948

Operating expenses:

Sales and marketing

48,112

(531

)

(543

)

—

—

—

47,038

Research, development and engineering

8,988

(207

)

—

—

—

—

8,781

General and administrative

55,776

(1,976

)

(2,051

)

—

(21,056

)

(750

)

29,943

Interest expense (income), net

10,233

—

—

(1,885

)

—

—

8,348

Other expense (income), net

126

—

—

—

—

811

937

Income tax provision (6)

13,036

757

812

552

5,982

(14

)

21,125

Net income

$

29,943

2,052

1,782

1,333

16,319

(47

)

$

51,382

Net income per share attributable to j2 Global, Inc. common
stockholders*

Basic

$

0.62

0.04

0.04

0.03

0.34

(0.00

)

$

1.06

Diluted

$

0.61

0.04

0.04

0.03

0.34

(0.00

)

$

1.05

* The reconciliation of net income per share from GAAP to adjust
non-GAAP may not foot since each is calculated independently.

The Company discloses adjusted non-GAAP Earnings Per Share ("EPS") as
supplemental non-GAAP financial performance measure, as it believes it
is a useful metric by which to compare the performance of its business
from period to period. The Company also understands that this adjusted
non-GAAP measure is broadly used by analysts, rating to compare the
performance of its business from period to period. The Company also
understands that this adjusted non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the presentation of
this adjusted non-GAAP financial measure provides useful information to
investors.

Adjusted non-GAAP EPS is not in accordance with, or an alternative to,
net income per share and may be different from non-GAAP measures with
similar or even identical names used by other companies. In addition,
this adjusted non-GAAP measure is not based on any comprehensive set of
accounting rules or principles. This adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts associated
with the Company's results of operations determined in accordance with
GAAP.

Non-GAAP net income is GAAP net income with the following modifications:
(1) elimination of share-based compensation and the associated payroll
tax expense; (2) elimination of certain acquisition-related integration
costs; (3) elimination of interest costs in excess of the coupon rate
associated with the convertible notes; (4) IRS consulting fee; (5)
elimination of amortization of patents and intangible assets that we
acquired; (6) elimination of additional tax or indirect tax related
(expense) benefit from prior years; and (7) elimination of income tax
provision associated with the noted modifications.

(2)

(6)

Acquisition

(4)

Additional

(1)

related

(3)

IRS

Tax Expense

Share-based

Integration

Interest

Consulting

(5)

(Benefit) from

Adjusted

GAAP

Compensation

Costs

Costs

Fee

Amortization

Prior Years

Non-GAAP

Revenues

$

161,253

—

—

—

—

—

—

$

161,253

Cost of revenues

28,186

(83

)

(27

)

—

—

(663

)

—

27,413

Operating expenses:

Sales and marketing

37,590

(584

)

(485

)

—

—

—

—

36,521

Research, development and engineering

8,447

(194

)

(80

)

—

—

—

—

8,173

General and administrative

46,500

(2,143

)

(2,942

)

—

204

(16,975

)

(1,118

)

23,526

Interest expense (income), net

10,313

—

—

(1,779

)

—

—

—

8,534

Other expense (income), net

(784

)

—

—

—

—

—

—

(784

)

Income tax provision (7)

9,124

768

1,120

531

(50

)

5,325

(118

)

16,700

Net income

$

21,877

2,236

2,414

1,248

(154

)

12,313

1,236

$

41,170

Net income per share attributable to j2 Global, Inc. common
stockholders*

Basic

$

0.45

0.05

0.05

0.03

(0.00

)

0.26

0.03

$

0.86

Diluted

$

0.45

0.05

0.05

0.03

(0.00

)

0.26

0.03

$

0.85

* The reconciliation of net income per share from GAAP to adjust
non-GAAP may not foot since each is calculated independently.

The Company discloses adjusted non-GAAP Earnings Per Share ("EPS") as
supplemental non-GAAP financial performance measure, as it believes it
is a useful metric by which to compare the performance of its business
from period to period. The Company also understands that this adjusted
non-GAAP measure is broadly used by analysts, rating to compare the
performance of its business from period to period. The Company also
understands that this adjusted non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the presentation of
this adjusted non-GAAP financial measure provides useful information to
investors.

Adjusted non-GAAP EPS is not in accordance with, or an alternative to,
net income per share and may be different from non-GAAP measures with
similar or even identical names used by other companies. In addition,
this adjusted non-GAAP measure is not based on any comprehensive set of
accounting rules or principles. This adjusted non-GAAP measure has
limitations in that it does not reflect all of the amounts associated
with the Company's results of operations determined in accordance with
GAAP.

j2 GLOBAL, INC.NET INCOME TO EBITDA RECONCILIATIONTHREE
MONTHS ENDED MARCH 31, 2016 AND 2015(UNAUDITED, IN
THOUSANDS)

The following table sets forth a reconciliation of EBITDA to net income,
the most directly comparable GAAP financial measure.

Three Months Ended March 31,

2016

2015

Net income

$

29,943

$

21,877

Plus:

Interest expense, net

10,233

10,313

Other expense (income), net

126

(784

)

Income tax expense

13,036

9,124

Depreciation and amortization

27,174

21,287

Reconciliation of GAAP to adjusted non-GAAP financial measures:

Share-based compensation and the associated payroll tax expense

2,809

3,004

Acquisition-related integration costs

2,595

3,535

Additional indirect tax expense from prior years

750

1,118

Fees associated with prior year audits

—

(204

)

EBITDA

$

86,666

$

69,270

EBITDA as calculated above represents earnings before interest and other
expense, net, income tax expense, depreciation and amortization and the
items used to reconcile GAAP to adjusted non-GAAP financial measures,
including (1) share-based compensation, (2) certain acquisition-related
integration costs and (3) additional indirect tax expense from prior
years. We disclose EBITDA as a supplemental non-GAAP financial
performance measure as we believe it is a useful metric by which to
compare the performance of our business from period to period. We
understand that measures similar to EBITDA are broadly used by analysts,
rating agencies and investors in assessing our performance. Accordingly,
we believe that the presentation of EBITDA provides useful information
to investors.

EBITDA is not in accordance with, or an alternative to, net income, and
may be different from non-GAAP measures used by other companies. In
addition, EBITDA is not based on any comprehensive set of accounting
rules or principles. This adjusted non-GAAP measure has limitations in
that it does not reflect all of the amounts associated with the
Company's results of operations determined in accordance with GAAP.

j2 GLOBAL, INC.NON-GAAP FINANCIAL MEASURES(UNAUDITED,
IN THOUSANDS)

Q1

Q2

Q3

Q4

YTD

2016

Net cash provided by operating activities

$

64,524

$

—

$

—

$

—

$

64,524

Less: Purchases of property and equipment

(4,321

)

—

—

—

(4,321

)

Add: Excess tax benefit share-based compensation

264

—

—

—

264

Free cash flows

$

60,467

$

—

$

—

$

—

$

60,467

Q1

Q2

Q3

Q4

YTD

2015

Net cash provided by operating activities

$

45,716

$

51,894

$

50,963

$

80,488

$

229,061

Less: Purchases of property and equipment

(2,401

)

(4,554

)

(4,972

)

(5,370

)

(17,297

)

Add: Excess tax benefit share-based compensation

334

1,770

2,437

(55

)

4,486

Add: IRS settlement*

—

5,753

1,164

—

6,917

Free cash flows

$

43,649

$

54,863

$

49,592

$

75,063

$

223,167

* Free cash flows of $54.9 million and $49.6 million for Q2 2015 and Q3
2015, respectively, were before the effect of payments associated with
taxes for prior periods under audit.

The Company discloses Free Cash Flows as supplemental non-GAAP financial
performance measure, as it believes it is a useful metrics by which to
compare the performance of its business from period to period. The
Company also understands that this non-GAAP measure is broadly used by
analysts, rating agencies and investors in assessing the Company's
performance. Accordingly, the Company believes that the presentation of
this non-GAAP financial measure provides useful information to investors.

Free Cash Flows is not in accordance with, or an alternative to, Cash
Flows from Operating Activities, and may be different from non-GAAP
measures with similar or even identical names used by other companies.
In addition, the non-GAAP measure is not based on any comprehensive set
of accounting rules or principles. This non-GAAP measure has limitations
in that it does not reflect all of the amounts associated with the
Company's results of operations determined in accordance with GAAP.